Crwinn Case Study Essay
Strategies to consider differentiating from competitors
Crown Cork and Seal headed by John Connelly have to differentiate it from competitors in to improve its competitiveness in the market. Listed below are the areas that CROWN should consider to improve its situation:
The 4 elements stated above are the big ticket items that CROWN can use as foundation for its actions.
1. Increased international and domestic expansion
In the changing market situation, CROWN is a small producer in a market dominated by bigger competitors. To move away from constantly being harassed by competitors, CROWN needs to capitalize on its strength which is niche (specialised) products and international markets. Investing in undeveloped countries means that CROWN can gain “pioneer rights” and tax shelter from …show more content…
As an example, CROWN can estimates that if CROWN enters the market and the existing firm respond aggressively, the total losses will be $7 million in low cost case and $10 million in high cost case. If the incumbent accommodates, CROWN will enjoy a profit of $6 million in low cost case and $4 million in high cost case.
The best outcome for CROWN is when CROWN is the only one in the market. In this case, CROWN would make a profit of (example) $15 million. If CROWN chooses to be accommodating, CROWN profits would be $10 if new entrant enters with the existing technology i.e. high cost case and $8 million if new entrant enters with the latest technology i.e. low cost case. If CROWN chooses to be aggressive, her profits would be $3 and $1million, respectively.
This is why being a first mover into a undeveloped country would be an ideal choice for CROWN to expand its presence internationally.
2. Focus on cost and
Crown Cork and Seal headed by John Connelly have to differentiate it from competitors in to improve its competitiveness in the market. Listed below are the areas that CROWN should consider to improve its situation:
The 4 elements stated above are the big ticket items that CROWN can use as foundation for its actions.
1. Increased international and domestic expansion
In the changing market situation, CROWN is a small producer in a market dominated by bigger competitors. To move away from constantly being harassed by competitors, CROWN needs to capitalize on its strength which is niche (specialised) products and international markets. Investing in undeveloped countries means that CROWN can gain “pioneer rights” and tax shelter from …show more content…
As an example, CROWN can estimates that if CROWN enters the market and the existing firm respond aggressively, the total losses will be $7 million in low cost case and $10 million in high cost case. If the incumbent accommodates, CROWN will enjoy a profit of $6 million in low cost case and $4 million in high cost case.
The best outcome for CROWN is when CROWN is the only one in the market. In this case, CROWN would make a profit of (example) $15 million. If CROWN chooses to be accommodating, CROWN profits would be $10 if new entrant enters with the existing technology i.e. high cost case and $8 million if new entrant enters with the latest technology i.e. low cost case. If CROWN chooses to be aggressive, her profits would be $3 and $1million, respectively.
This is why being a first mover into a undeveloped country would be an ideal choice for CROWN to expand its presence internationally.
2. Focus on cost and